What is the interest rate provided by ICICI Prudential Overnight Fund: Growth vs just keeping the money in HDFC bank savings account at 3.50% interest rate.
The CAGR has been 4.89%. Refer: https://coin.zerodha.com/funds/140516058.00206600/icici-prudential-overnight-fund-direct-plan
But is it 100% safe (no risk) right?
Nothing is 100% safe, not even your bank FDs or G-secs, technically, even the Govt can default. It’s low risk and that’s the right way to look at things.
Dear Investor,
ICICI Prudential Trust Limited, the Trustee to ICICI Prudential Mutual Fund (the Fund) has approved the change in face value of units from Rs. 100 to Rs. 1000 of ICICI Prudential Overnight Fund (the Scheme) with effect from August 16, 2022.
Pursuant to change in face value from Rs. 100 to Rs. 1000, the NAV per unit of the Scheme will be reset to reflect the change in the face value per unit and the units of the existing unit holders under the Scheme will change proportionately. On account of the said change in face value, the balance Unit holding of the existing Unit holders under the Scheme will be adjusted. However, this will not have any impact on the current value of holdings of the Unit holders of the Scheme.
It may be noted that in case of those Unit holders who hold less than 0.001 unit as a result of the aforesaid adjustment, the said balance units will be repurchased at the applicable NAV and the proceeds will be paid out to the Unit holders.
The Scheme will not be available for transaction in dematerialized mode and also through the Stock Exchange(s)/other infrastructure on August 11, 2022, August 12, 2022 and August 17, 2022 (Closure period for 3 Working Days). The same will be available for transactions from August 18, 2022. For the purposes of redemption, the investor holding the units in dematerialized form would have to rematerialize the units prior to start of the closure period and submit physical redemption.
Click to read addendum
In case of any queries you can reach our call centre. In case you require any further assistance or clarification, (1) you can get in touch with your Mutual Fund Distributor OR (2) write to us at [email protected] OR (3) contact on our customer care helplines 1800 222 999(from MTNL/BSNL) and 1800 200 6666 (Others) between 8 AM and 8 PM, Monday to Saturday and between 9 AM to 7 PM on Sunday.
Warm Regards,
ICICI Prudential Mutual Fund
Received this mail today. Is there any impact for pledged holdings of this mutual fund in Zerodha demat account?
I don’t think so. This looks like a mathematical adjustment. The NAV will change in proportion to the change in face value. The market value of the holdings or the pledged holding will not change. But I think it will take a few days to get displayed correctly.
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